(LoanSafe.org) – The New York City Department of Finance is implementing a new program to allow property owners, lienors, or their designees (or executors/administrators of the estates of owners) to register to receive electronic notification when a deed or deed-related document, or a mortgage, or mortgage-related documents, affecting an ownership interest in real property has been recorded against a property in the City of New York. This program will alert registered property owners when documents are recorded without their knowledge and will allow them to take steps to limit the harm caused by the recording of a fraudulent document.
From NY Daily News:
The Finance Department will send the alarm by e-mail, text message or letter to any owner who has filled out a simple online form at nyc.gov/finance.
“It’s free and it’s a major step in our attack [on] this pervasive fraud,” Finance Commissioner David Frankel said.
“If you’re notified of an unauthorized transaction, immediately call 311 and the matter will be referred to the appropriate law enforcement agency.”
Real estate fraud, including deed and mortgage fraud, often involves the recording of documents at the City Register’s Office (or the Office of the Richmond County Clerk), without the knowledge of the actual property owner. Some fraudulent schemes include recording a deed or mortgage with forged signatures. Others may involve recording a deed or mortgage that has been materially altered after the owner signs it but before it is recorded. Criminals who record a phony deed may then either obtain a mortgage or sell the property.
Real estate fraud can also overlap with identity theft when a criminal pretending to be the owner of a property uses stolen personal information to obtain a mortgage. In most cases of real estate fraud, the actual property owners may be unaware of any fraudulent activity until they sell their home, transfer title to a relative, refinance their mortgage, or become subject to a foreclosure action.
Under New York State law, the City Register’s Office and the Office of the Richmond County Clerk are generally required to record all deeds and mortgages that are proper on their face. This means that if fraudulent documents are completed correctly and properly acknowledged and notarized, they are recorded and may go undetected until the defrauded party is served with foreclosure documents or the defrauded party initiates a legitimate transaction against the property.
Notice of Recorded Document Program
How Will the Program Work?
Property owners, lienors, or their designees, or executors/administrators of the estates of owners, who have an interest in real property in the City of New York can register using the borough, block and lot number or the address of a property to receive an email, text message or letter each time a deed, mortgage or related document is recorded against the registered property.
Owners of individual cooperative apartments and timeshare units may NOT want to register for notification because it may result in a large number of unrelated notifications. These property types do not have a unique borough block and lot number so notification can only be provided on a building-by-building basis rather than a unit by unit basis.
For more information, please visit, http://nyc.gov/html/dof/html/property/property_rec_recording.shtml.
Recorded Document Notification Online Application
Program Description
Notice of Recorded Document FAQs
Notice by Mail of Recorded Document Application
ACRIS Online Document Recording
Deed / Mortgage Recording
Deeds and mortgages are recorded with the City Register. This shows the ownership of real property (houses, condominiums, apartment buildings, land, etc.).
Guide to Document Recording Brochure
Download Brochure (838k)
Mortgage Recording and Tax Rates
Directions for recording a mortgage in NYC.
Real Property Transfer Tax (RPTT)
A tax on the sale of real property or for a change or transfer of at least a 50% ownership. The tax is not charged if the sale or transfer value is $25,000 or less.
Recording Property Related Documents
The City Register records are used to prove legal ownership of individuals and companies (e.i. Banks).
Uniform Commercial Code Financing Statements (UCC)
Uniform Commercial Codes are laws that govern commercial transactions. These transactions show a security interest in personal property” not “real estate” or “real property.” Examples are shares of a cooperative showing ownership/mortgages, and dentist fixture filings.
